Another courtroom confrontation commences today in the Twin Cities between NFL owners and their locked-out players, with a federal judge poised to punish the league for violating the collective bargaining agreement by converting television revenue into a war chest.

U.S. District Court Judge David Doty, the NFL’s great white whale of litigation, is considering whether to issue monetary damages to the players and block owners from collecting $4 billion in TV rights fees.

A hearing is scheduled for 8 this morning in Minneapolis as the lockout grinds into a third month with negotiations stalled and players and owners clawing for leverage via lawsuits.

Doty ruled March 1 that the NFL violated the expired labor agreement by renegotiating television contracts to allow team owners to tap $4 billion during a lockout even if no games are played in 2011.

Overturning a special master’s initial ruling, Doty determined the NFL breached its contract with the since-dissolved NFL Players Association by accepting below-market deals that produced less revenue to share with players.

“The record shows that the NFL undertook contract renegotiations to advance its own interests and harm the interests of the players,” Doty wrote in his 28-page decision.

Doty said Special Master Stephen Burbank erred in February by failing to recognize that the labor agreement requires the NFL to maximize its television contracts for the joint benefit of the league and Players Association.

Burbank, a University of Pennsylvania law professor, did rule that the NFL violated parts of the collective bargaining agreement in renegotiating specific deals with ESPN and NBC and awarded the NFLPA $6.9 million in damages.

At issue is whether the players are entitled to an injunction that would place the $4 billion into escrow until the lockout is resolved, plus compensatory and punitive damages for the league’s violations beyond what Burbank awarded.

A protective order required lawyers on both sides to redact specific dollar figures in their court filings although it is believed the players are seeking about $1 billion in damages.

According to the NFLPA, the league’s actions were “deliberate, contemplated and willful and sought to seek an unconscionable advantage” over the players during collective bargaining.

Doty has broad discretion and his decision is pivotal because it could swing momentum in the clash if owners are forced to pay for trying to spend somebody else’s $4 billion to finance a prolonged work stoppage.

Both sides are awaiting a review by the 8th Circuit Court of Appeals of U.S. District Judge Susan Richard Nelson’s injunction that could halt the lockout in a parallel lawsuit.

Fifteen current and former players, led by New England Patriots star quarterback Tom Brady, are suing the NFL in St. Paul for allegedly violating federal antitrust laws by locking out the players and preventing them from marketing their services.

Arguments are scheduled next month in St. Louis on that issue.

“The Brady action does not change the need for independent relief in this action to redress defendants’ bad faith breaches and resulting harm,” according to the NFLPA brief.

The NFL claims the union waived its right to seek additional damages from Doty by not claiming them with Burbank.

“The Special Master is the trier of fact. The NFLPA may not circumvent the finder of fact by seeking punitive damages for the first time after the Special Master has heard the evidence and issued his findings,” the NFL said.

The NFL has deals with NBC, FOX, CBS and ESPN through the 2013 season and DirecTV through 2014. In 2010, the NFL earned more than $9 billion in revenue it shared with the players – half of which came from its TV deals, according to the union.

Burbank rejected the union’s claims and ruled the NFL used “sound business judgment” in renegotiating its television contracts, which require the league to repay the networks rights fees with interest if games are canceled.

Desperate to prevent owners from accessing the $4 billion, the union appealed Burbank’s decision to Doty, who has overseen NFL labor matters since brokering the 1993 Reggie White settlement that established modern free agency and the salary cap.

The NFL twice has attempted but failed to remove Doty from his stewardship over collective bargaining.

The most recent clash involved Doty’s 2008 decision allowing Michael Vick to retain $20 million in bonuses from the Atlanta Falcons after Burbank ruled the quarterback violated his contract when he was convicted of fronting an illegal dogfighting ring.

Brian Murphy has been on the Pioneer Press sports staff since 2000, migrating from the Detroit Free Press, where he covered police, courts and sports for four years. Murphy was the Minnesota Wild/NHL beat writer from 2002 to 2008 and has covered the Vikings as a reporter and columnist since 2009. Murphy is a Detroit native and Wayne State University graduate.

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